Eastern vs. Western Management

E A S T E R N V S . W E S T E R N M A N A G E M E N T !

C U LT U R A L D I V E R S I T Y A N D

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C U R R E N T I S S U E S I N M A N A G E M E N T ( M B A 2 3 5 A ) 1 8 F E B R U A R Y 2 0 1 4

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C U LT U R E : W E S T V S . E A S T

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C U LT U R A L D I F F E R E N C E S *

* T H E R E A R E S T I L L E X C E P T I O N S O F C O U R S E

West (US / Europe) East (China / East Asia)

LOGIC Linear (direct associations) Spiral (roundabout)

COMMUNICATION Direct, verbal Indirect, implied

IDENTITY Individual, independent Group orientated

AGREEMENT / DISAGREEMENT

Argumentative, verbal Hard to say no, non-verbal

PUNCTUALITY Start and end on time Appointments flexible

RESPECT Success, achievement Seniority, wisdom

BUSINESS RELATIONSHIP Economics come first Relationship comes first

DECISION MAKING Distributed, proactive Manager has final say

TIME HORIZON Short term (per quarter) Long term (years ahead)

RISK / SPENDING Risk-takers, spend Risk-avoiders, save

W E S T E R N V S . E A S T E R N M A N A G E M E N T S T Y L E

T H E 6 S T Y L E S O F L E A D E R S H I P ( G L O B E S T U D Y, 2 0 0 4 )

• high standards, decisiveness, and innovation; seeks to inspire people around a vision; creates a passion among them to perform; and does so by firmly holding on to core values.

Charismatique

•  instills pride, loyalty, and collaboration among organizational members; and highly values team cohesiveness and a common purpose or goals.

Team

• encourages input from others in decision-making and implementation; and emphasizes delegation and equality.

Participative

• stresses compassion and generosity; and it is patient, supportive, and concerned with the well-being of others.

Human

• an independent, individualistic, and self-centric approach to leadership.

Autonomous

• emphasizes procedural, status-conscious, and 'face-saving' behaviors; and focuses on the safety and security of the individual and the group.

Self-protective

M A N A G E M E N T P R I N C I P L E SW E S T E R N E A S T E R N

Relationship based on equality, merit and individual ability

Relationship based on mutual benefit, duty and group dynamics

Personal and professional contacts are put in different categories

Contacts are regarded as being friends once accepted in group

Be firm, stick to principles and deal with problems immediately

Save 'face', seek harmony and avoid conflicts at all costs

Opinions determined by debate, individual thinking and input

Opinions predetermined by leaders representing individuals in groups

Individual skills and knowledge define status with personal rewards

Status and patronage where benefits are shared with group

B R I D G I N G C U LT U R A L D I V I D E S , 2 0 1 3

W E S T V S . E A S T M A N A G E M E N T

Fundamental differences in the East and West make it very important to understand both management styles

!

Analysis of the different management styles in the East and West are done on the basis of these concepts and values:

‣ Collectivism vs. Individualism

‣ Vertical Hierarchy vs. Horizontal Hierarchy

‣ Harmony vs. Competition

‣ Long-term vs. Short-term orientation

C O L L E C T I V I S M V S . I N D I V I D U A L I S MIn East-Asian countries group consciousness is very important:

‣ conveys feeling of one-ness

‣ gives employees a strong sense of belonging

‣ believes that group decisions are more carefully evaluated and are less risky

In the West, individualism is emphasized: ‣ private life and work are divided

‣ employees are given more responsibility

‣ decisions can be made faster and are not side-tracked by emotions

W E S T V S . E A S T M A N A G E M E N T

Seniority is a very important concept in East-Asian countries.

‣ emphasizes vertical hierarchy

‣ promotion inside a company is based on how long one has worked there

‣ results in more responsibility for older employees

!

In contrast to this, equality in the workplace is imperative in the West.

‣ emphasizes horizontal hierarchy

‣ employees are promoted on merit-basis

‣ younger members of the company are given more responsibility

W E S T V S . E A S T M A N A G E M E N T

V E RT I C A L H I E R A R C H Y V S . H O R I Z O N TA L H I E R A R C H Y

!

HARMONY VS. COMPETITION

Harmony is an essential value in East-Asian countries.

‣ a harmonious work place leads to more efficiency and better results

‣ negotiation skills are of great importance

‣ it is better not to stick out of the group; rather one should try to maintain harmony at all costs

In the West competition is found everywhere

‣ and becomes a very strong motivational factor

‣ encourages the desire to succeed and thus results in diligence

‣ possible to have ‘productive’ conflicts, which result in a favorable outcome W E S T V S . E A S T

M A N A G E M E N T

!

LONG-TERM VS. SHORT-TERM ORIENTATION

East-Asian companies tend to focus on long-term projects

‣ gives competitive advantage

‣ possible to implement due to employees’ strong sense of belonging to the company

‣ down-side of inflexibility

Western companies are said to be short-term oriented ‣ short-term projects are seen as time-efficient

‣ as employees constantly change work places, difficult to implement long-term projects

‣ advantage of being more flexible

W E S T V S . E A S T M A N A G E M E N T

I N T E R C U LT U R A L C O M P E T E N C E

Regional Experience

Openness &

Tolerance

Language Proficiency

M A N A G E M E N T I N E A S T A N D W E S T C O N C L U S I O N

Ultimately, the management styles of the East and the

West are complementary, rather than exclusive. !

Therefore, it is very important to know the similarities and differences in order to be able to understand and cope

with any situation that might arise in cross-cultural management.

W E S T V S . E A S T M A N A G E M E N T

“When in Rome, do as the Romans do.”

“ A N AT I O N A L O N E M A K E S N O I S E , B U T T O G E T H E R W E M A K E M U S I C . ”

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